26th Jan 2016 08:51
LONDON (Alliance News) - South America-focused oil and gas producer Amerisur Resources PLC on Tuesday said it has struck a deal to acquire Platino Energy (Barbados) Ltd from COG Energy for USD7.0 million in shares.
Amerisur will issue 22.7 million shares to COG to cover the initial USD7.0 million consideration, with a further USD500,000 to be paid, also in shares, once the deal is finalised. No pricing details on the shares were given, but the initial consideration would indicate a share price of 30.83 US cents, or around 21.7 pence.
Amerisur shares were trading down 1.7% to 19.66p on Tuesday morning.
Amerisur said it will pay COG a 2.0% net royalty per block for the PUT-8 block in Platanillo, the Coati project and the Andquies Block, all in Colombia. All the assets will have access to Amerisur's Ecuador-Colombia interconnector pipeline, which will cut transportation and commercialisation cost for the projects.
"This acquisition represents a significant new opportunity for Amerisur and is in line with our strategy to expand the company's asset base using the low oil price environment to buy assets with significant resource potential at attractive valuations, while expanding our portfolio of opportunities, thus creating greater flexibility and diversity in our production base and forward planning," said John Wardle, Amerisur's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
AMER.L